International State Bank v. Commissioner
United States Tax Court
Petitioner acquired 100 percent of the stock of S from I and immediately liquidated S. Held, petitioner did not acquire the S stock by purchase within the meaning of sec. 334(b)(3), I.R.C. 1954, and is therefore not entitled to a stepped-up basis under sec. 334(b)(2) in the assets it received upon liquidation of S. Held, further, in a liquidation of a subsidiary which meets the requirements of sec. 332, the basis of the assets thus received is determined under sec. 334(b)(1)…
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Petitioner acquired 100 percent of the stock of S from I and immediately liquidated S. Held, petitioner did not acquire the S stock by purchase within the meaning of sec. 334(b)(3), I.R.C. 1954, and is therefore not entitled to a stepped-up basis under sec. 334(b)(2) in the assets it received upon liquidation of S. Held, further, in a liquidation of a subsidiary which meets the requirements of sec. 332, the basis of the assets thus received is determined under sec. 334(b)(1) unless the exception provided by sec. 334(b)(2) applies.
1Opinion of the Court
International State Bank, Petitioner v. Commissioner of Internal Revenue, Respondent
International State Bank v. Commissioner
Docket No. 9343-74
United States Tax Court
70 T.C. 173; 1978 U.S. Tax Ct. LEXIS 125;
May 8, 1978, Filed
Decision will be entered under Rule 155.
Petitioner acquired 100 percent of the stock of S from I and immediately liquidated S. Held, petitioner did not acquire the S stock by purchase within the meaning of sec. 334(b)(3), I.R.C. 1954, and is therefore not entitled to a stepped-up basis under sec. 334(b)(2) in the assets it received upon liquidation of S. Held, further, in…
Also in this document: Concurrence.
2Cases cited19 opinions
- Kimbell-Diamond Milling Co. v. Comm'rUnited States Tax Court · 1950
- Kimbell-Diamond Milling Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1951
- Commissioner of Internal Revenue v. Ashland Oil & Refining Co.Court of Appeals for the Sixth Circuit · 1938
- American Potash & Chemical Corporation v. The United StatesUnited States Court of Claims · 1968
- Yoc Heating Corp. v. CommissionerUnited States Tax Court · 1973
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